Best Areas to Invest While Building Rental Properties in the NRV

Building rental properties in the NRV is gaining attention from investors who see long-term potential in this market. The region combines steady demand with expanding job growth and diverse renter populations.

At the same time, limited housing supply and rising costs are pushing renters to search harder for quality homes. This imbalance opens the door for investors to create value through new construction.

This post highlights the best areas for investing in rental property construction in the NRV. Learn which locations offer the strongest balance of affordability, rental demand, and appreciation potential.

New River Valley Real Estate Market Watch

As of August 2025, the average price per square foot of a home in Christiansburg is $193. However, NRV real estate trends are always changing. Contact The Louise Baker Team for help buying and selling homes in Virginia’s New River Valley.

Top NRV Locations for Building Rental Properties

Blacksburg/Virginia Tech Area

You’ll quickly notice that Blacksburg stands out as an attractive market in the NRV. Virginia Tech drives housing demand year-round, and that makes the rental market one of the most competitive in the region.

Vacancy rates stay low, and well-priced properties often lease quickly. New construction close to campus or on reliable transit routes rarely sits empty. That makes Blacksburg appealing if your priority is steady occupancy.

The tradeoff is cost. Land and construction prices run higher in Blacksburg than in surrounding towns. Investors must weigh the upfront expense against the security of long-term demand. Many decide the stability is worth it, even if the entry price is steeper.

If you’re considering Blacksburg, think about the types of tenants common to the city. Student housing dominates near campus, but faculty and professionals also create demand in neighborhoods farther out. That variety gives you options in property design, location, and pricing.

Christiansburg (Town and Surrounding Areas)

Many investors see Christiansburg as the middle ground in the NRV. It combines affordability with convenience, which makes it attractive for first-time builders. Home prices generally fall below Blacksburg levels, so entry costs are easier to manage.

Christiansburg offers strong retail access, reliable schools, and quick connections to major roads. Renters often prefer the balance of price and location, which helps properties lease quickly. Growth in nearby employers has also supported demand from families and professionals who want to stay close to work.

If you’re building here, consider long-term growth. More development is happening along key corridors, which can raise competition in certain areas. At the same time, those projects help expand infrastructure, which adds to the town’s overall appeal.

Radford City and Radford University Area

Radford is another NRV town that offers reliable rental demand, but for different reasons. Radford University attracts a constant flow of students, which creates strong interest in off-campus housing.

Student-focused rentals require a different strategy than traditional family housing. Turnover is higher, and maintenance costs can run above average. Successful investors plan for those challenges by setting aside reserves and using durable finishes during construction.

The upside is occupancy. Student-friendly housing rarely sits vacant when priced right. If you specialize in student housing, Radford provides steady returns supported by a large and renewable tenant base.

Not every investor wants this type of market, but those who understand student housing often find Radford to be a dependable option.

Pulaski and Dublin

Pulaski and Dublin appeal to investors who want a lower entry point. Land prices often run below levels in Blacksburg and Christiansburg, which makes new construction more accessible for builders on a budget.

These towns don’t move at the same pace as Blacksburg, but growth is noticeable. Industrial expansion and new job opportunities have created steady interest from renters who want more space for their money. Families in particular are looking at Pulaski and Dublin because they can often find larger homes at reasonable rates.

If you’re building here, patience is key. Lease-ups may take longer, and appreciation may not move as fast as in more competitive markets. The tradeoff is affordability and future potential as economic development continues.

Giles County and Floyd County

Giles and Floyd counties appeal to tenants who want rural space and quieter living. They also attract retirees and remote workers, especially near outdoor recreation areas.

Short-term rentals can succeed here, but you should expect slower lease-ups and lower average rents compared to towns. Building duplexes or small apartments in central locations is a practical strategy.

These counties reward investors who target niche markets and are patient with turnover.

Managing Risks in NRV Builds

No market is risk-free. Student-focused rentals bring higher turnover, and construction costs can shift quickly. Interest rates also affect profitability.

The good news is that supply in the NRV remains tight compared to demand. Renters in many towns already spend a large share of their income on housing, which shows the need for more options. Investors who diversify can balance these risks and keep income steady.

Long-Term Market Outlook

The New River Valley is in a great position for growth. Virginia Tech expansion, population migration from larger cities, and infrastructure projects all support housing demand.

Broadband and road improvements make rural areas more attractive, while towns like Christiansburg continue to see price gains. With demand outpacing supply, values and rents are expected to rise over the next decade.

Investors who begin building today stand to benefit from these long-term trends.

Questions Investors Ask About Building Rentals in NRV

How quickly do new rentals lease in the NRV?

Properties in Blacksburg and Christiansburg often rent within two to three weeks. Rural counties may take four to six weeks.

Which property types perform best in the NRV?

Multi-unit rentals near universities draw steady demand. Suburban single-family homes attract long-term families. Rural units work for retirees and remote professionals.

What return should investors expect when building rentals?

Many aim for 2–4% annual rent growth and property appreciation above inflation. Returns vary by property type and location.

What is the advantage of building new versus buying existing rentals?

New builds offer higher rents, modern layouts, and lower maintenance in the early years. Existing properties may provide quicker cash flow, but often require upgrades.

Build with Confidence in NRV

Building rental properties in the NRV offers more than financial return. It creates opportunities to serve a growing community while building lasting value. Each area presents unique advantages.

If you’re ready to explore your options, The Louise Baker Team can help you choose the right location, plan your project, and understand the numbers. Contact us today and take the first step toward building in the New River Valley.